Replies to post #212 on Strategy Desk Users' Group

[mattie633]

Here's my more specific question on moving averages.

If I recall correctly, Shannon advocates that the trend being played into (in my prior example, the week) would have a complete "fan" formation... being defined as 10MA greater than 20MA and 20MA greater than 30MA... and all 3 going up. The MAs could vary, but they are all short term-ish. But to me, and others I've discussed this with, by the time the fan is in place, the trend is stale. I've been playing with some code to test this theory, but I've not had any luck. Wanted to know if you had had any experience with it.

Here's the code for the MA FAN SCORE. You might not be interested in it per se, but I wanted to show you the method I used... it's a neat coding trick for scoring conditions that can be defined progressively or incrementally. That probably makes no sense, but maybe it will when you read the code.

{SHORT-TERM (10,20,30) MA FAN….. 1=in position, 2 =all three in position and going up, 3=all three in position, going up, diverging, strengthening. Negative values are bearish, positive scores are bullish. Shannon advocates a buy on a score of 2 and a sell on a score of -2}

{BULL FAN -}
1 * (MovingAverage[MA,Close,10,0,W] > MovingAverage[MA,Close,20,0,W] AND MovingAverage[MA,Close,20,0,W] > MovingAverage[MA,Close,30,0,W]) +

{BULL FAN}
1 * (MovingAverage[MA,Close,10,0,W] > MovingAverage[MA,Close,20,0,W] AND MovingAverage[MA,Close,20,0,W] > MovingAverage[MA,Close,30,0,W] AND MovingAverage[MA,Close,10,0,W] > MovingAverage[MA,Close,10,0,W,01] AND MovingAverage[MA,Close,20,0,W] > MovingAverage[MA,Close,20,0,W,01] AND MovingAverage[MA,Close,30,0,W] > MovingAverage[MA,Close,30,0,W,01]) +

{BULL FAN +}
1 * (MovingAverage[MA,Close,10,0,W] > MovingAverage[MA,Close,20,0,W] AND MovingAverage[MA,Close,20,0,W] > MovingAverage[MA,Close,30,0,W] AND MovingAverage[MA,Close,10,0,W] > MovingAverage[MA,Close,10,0,W,01] AND MovingAverage[MA,Close,20,0,W] > MovingAverage[MA,Close,20,0,W,01] AND MovingAverage[MA,Close,30,0,W] > MovingAverage[MA,Close,30,0,W,01] AND (MovingAverage[MA,Close,10,0,W] - MovingAverage[MA,Close,20,0,W]) > (MovingAverage[MA,Close,10,0,W,1] - MovingAverage[MA,Close,20,0,W,1]) AND (MovingAverage[MA,Close,20,0,W] - MovingAverage[MA,Close,30,0,W]) > (MovingAverage[MA,Close,20,0,W,1] - MovingAverage[MA,Close,30,0,W,1])) +

{BEAR FAN -}
-1 * (MovingAverage[MA,Close,10,0,W] < MovingAverage[MA,Close,20,0,W] AND MovingAverage[MA,Close,20,0,W] < MovingAverage[MA,Close,30,0,W]) +

{BEAR FAN}
-1 * (MovingAverage[MA,Close,10,0,W] < MovingAverage[MA,Close,20,0,W] AND MovingAverage[MA,Close,20,0,W] < MovingAverage[MA,Close,30,0,W] AND MovingAverage[MA,Close,10,0,W] < MovingAverage[MA,Close,10,0,W,01] AND MovingAverage[MA,Close,20,0,W] < MovingAverage[MA,Close,20,0,W,01] AND MovingAverage[MA,Close,30,0,W] < MovingAverage[MA,Close,30,0,W,01]) +

{BEAR FAN +}
-1 * (MovingAverage[MA,Close,10,0,W] < MovingAverage[MA,Close,20,0,W] AND MovingAverage[MA,Close,20,0,W] < MovingAverage[MA,Close,30,0,W] AND MovingAverage[MA,Close,10,0,W] < MovingAverage[MA,Close,10,0,W,01] AND MovingAverage[MA,Close,20,0,W] < MovingAverage[MA,Close,20,0,W,01] AND MovingAverage[MA,Close,30,0,W] < MovingAverage[MA,Close,30,0,W,01] AND (MovingAverage[MA,Close,10,0,W] - MovingAverage[MA,Close,20,0,W]) < (MovingAverage[MA,Close,10,0,W,1] - MovingAverage[MA,Close,20,0,W,1]) AND (MovingAverage[MA,Close,20,0,W] - MovingAverage[MA,Close,30,0,W]) < (MovingAverage[MA,Close,20,0,W,1] - MovingAverage[MA,Close,30,0,W,1]))

[I- B- N]

Tony since you like to trade with the MA ( I prefer swing trades also ) pull up a chart on MLNK and see if you have a scan that mirror's the pattern of a stock that trades within the confine of the middle and upper bollinger band for any length of time.

I had one from StockFetcher but have misplaced it (?) . Have played around with it using 5% max gain/day with Consecutive days of increasing close price over open but have not came up with a viable scan yet.